GOVERNMENT TO PARTIALLY PRIVATIZE ZAMMSA, REVEALS PROF CHILENGI
The government plans to engage private companies to manage the warehousing, storage and distribution functions of Zambia Medicines and Medical Supplies Agency (ZAMMSA) in a move it says will improve efficiency of the country’s drug bank.
Health minister Professor Roma Chilengi says as part of reforms to bring in private sector efficiency and expertise, ZAMMSA will retain responsibility for procurement and administration under the so-called “reset strategy.”
Prof Chilengi said the reforms followed a 2024 audit that exposed significant weaknesses in governance, procurement and supply chain management, including contracts worth K1.4 billion awarded despite internal audit objections.
Prof Chilengi said the proposed public-private partnership will improve the operational efficiency of ZAMMSA.
According to Zambia Daily Mail, Prof Chilengi was responding to nominated Member of Parliament (MP) Noel Nkoma on whether the government is considering outsourcing some of ZAMMSA’s functions.
This was after Prof Chilengi delivered a ministerial statement on the operations of the agency.
The minister also assured Shiwang’andu MP Stephen Kampyongo that the reforms at ZAMMSA will not result in shortages of medicines and medical supplies.
In answering Mongu East MP Mubita Nawa on technology integration, Prof Chilengi said the electronic logistics management system will enable end-to-end tracking of medical commodities.
He said the system’s database will be hosted by Zambia Medicines Regulatory Authority, with a mirror copy accessible to Drug Enforcement Commission for real-time monitoring of commodity movements.
“With that, we cannot be shocked with so many containers sitting in warehouses. We will be able to respond and immediately identify any deviation,” Prof Chilengi said.
He said the 2024 audit revealed widespread failures across the agency, including inadequate availability of medical commodities in health facilities, which averaged 30 per cent in 2021.
Prof Chilengi said the report also uncovered price inflation of up to 1,613 per cent, with 4,096 warehouse shipments having disappeared from the system, while 3.34 million units’ worth about K290 million could not be verified
In distribution, discrepancies amounting to K42 million had not been investigated, while an unregistered supplier was awarded a contract worth K16.1 million.
“On occasion, there has been blatant fraud, to the extent that it resulted in numerous complaints from the donors and co-operating partners,” Prof Chilengi said.
The minister disclosed that Treasury has set aside about K100 million for the separated employees, while a new organisational structure has been developed to align the agency with Government’s policy direction and restore public confidence.
He said recruitment is being conducted in phases, beginning with senior management, with a caution to applicants against offering inducements to secure employment.